As the cost of raising a child increases, parents should teach their children the benefit of saving, it has been suggested.

LV= claims that following media attention concerning the importance of financial education, parents could highlight the costs of raising a family to their children.

Lucy Pope, media relations manager for the firm, explained that when parents help their children to save, watching the money grow is a good way of bringing finances "to life".

"It's really good for the child to actually see how things are growing and obviously with the onset of technology children can be more savvy with online savings and that type of thing," she said.

According to LV=, the average child receives £5,469 in pocket money between the ages of five and 18. However this is a reduction from the figures in 2006, when the average child received £5,518 over the same period.

© Adfero Ltd